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"Shut up, Dan": Musk takes dim view of Tesla-xAI merger idea

"Shut up, Dan": Musk takes dim view of Tesla-xAI merger idea

Tesla bull Dan Ives on Tuesday proposed a merger even more colorful than his clothes, when he sketched out a scenario whereby the carmaker could buy xAI.Why it matters: This could create a viable rival to OpenAI and Big Tech incumbents like Meta and Microsoft, while combining two crown jewels of Elon Musk's empire.Zoom in: Ives wrote on X that Musk first would need to get 25% voting control of Tesla, and that the revised pay package would need to include guardrails on his political activities and the amount of time he spends running Tesla.Ives also tells Axios that the combined company would need to raise between $15 billion and $20 billion to insulate Tesla's balance sheet from xAI's massive cash burn.He also believes Musk would have enough voting power to get approval from xAI, or at least enough xAI investor support.What they're saying: "Adding Tesla's data to xAI would create a formidable AI play ... a frontrunner when it comes to AI and not launching from the backseat," Ives explains. "There obviously are some concerns, but the benefits far outweigh the risks."Musk, in an X reply to Ives, simply said: "Shut up, Dan."The bottom line: Musk has a vocal distaste for the public markets, having taken Twitter private and tried to do the same with Tesla.So it would be odd for him to open xAI to such scrutiny — unless he ultimately agrees with Ives that it's his best path for beating rival Sam Altman.

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